MP: 38 DCCBs face liquidity crisis

A recent RTI query has revealed that a massive amount of Rs. 4,200 crore in NPA besets district cooperative and rural banks in Madhya Pradesh and the state accounts for a gargantuan 10 percent NPA of district cooperative banks in the country, reports Times of India.

Official sources say due to these NPAs, 38 district cooperative banks face severe liquidity crisis. Around 10-12 banks out of the 38 district cooperative banks are facing this situation.

Madhya Pradesh Rajya Shahkari Bank Maryadit — the state cooperative bank — has a whopping NPA of Rs 513 crore. This is second only to the Maharashtra state cooperative bank. NABARD has revealed that NPAs of district cooperative banks across the country is around Rs 22,000 crore.